20-401. Definitions
In this article, unless the context otherwise requires:
1. " Affiliated" means, with respect to an insured, any entity that controls, is controlled by or is under common control with the insured. For the purposes of this paragraph, " control" means either:
(a) Directly or indirectly acting through one or more other persons who own, control or have the power to vote twenty-five per cent or more of any class of voting securities of the other entity.
(b) Control in any manner over the election of a majority of the directors or trustees of the other entity.
2. " Affiliated group" means any group of entities that are affiliated.
3. " Clearinghouse" means the mechanism or entity established pursuant to a multistate agreement or compact for the receipt and distribution of premium taxes and transaction data related to the sale of unauthorized insurance.
4. " Diligent effort" means having sought insurance for the same risk from at least three insurers authorized in this state to write the particular insurance coverage or type, class or kind of insurance.
5. " Foreign decree" means any decree or order in equity of a court located in a reciprocal state, including a court of the United States located therein, obtained by a qualified party against any insurer incorporated or authorized to do business in this state.
6. " Home state" means one of the following:
(a) The state in which an insured maintains its principal place of business or, in the case of an individual, the individual's principal place of residence.
(b) If one hundred per cent of the insured risk is located out of the state that would be the insured's home state pursuant to subdivision (a) of this paragraph, the state to which the greatest percentage of the insured's taxable premium is allocated for the insurance contract in question.
(c) If more than one insured from an affiliated group are named insureds on a single nonadmitted insurance contract, the state as determined pursuant to subdivision (a) of this paragraph of the member of the affiliated group that has the largest percentage of premium attributed to it under the insurance contract.
7. " Multistate risk" means a risk covered by an unauthorized insurer with insured exposures in more than one state.
8. " Qualified party" means a state regulatory agency acting in its capacity to enforce the insurance laws of such state.
9. " Reciprocal state" means any state or territory of the United States the laws of which give to insurers organized under the laws of this state the same right to defend actions as that granted to foreign insurers under the laws of this state and the laws of which contain procedures substantially similar to those specified in this article for the enforcement of decrees or orders in equity issued by courts located in other states or territory of the United States against any insurer incorporated or authorized to do business in such state or territory.
10. " Single-state risk" means a risk with insured exposures in only one state.
11. " Unauthorized insurance" or " nonadmitted insurance" means any insurance permitted to be placed directly or through a surplus lines broker with an insurer who is not licensed to transact insurance in this state.
Section: Previous 20-400.03 20-400.04 20-400.05 20-400.07 20-400.08 20-400.09 20-400.10 20-401 20-401.01 20-401.02 20-401.03 20-401.04 20-401.05 20-401.06 20-401.07 NextLast modified: October 13, 2016